Life Stage Series: Money Moves in Your 60s

We believe that financial planning is for everyone, no matter what age or stage of life. Money looks different at every stage of life. Our Life Stage Series breaks down what you need to know – from your 20s to your 60s – so you're always one step ahead.

Your 60s mark the transition from accumulation to enjoyment, but smart financial management doesn't stop at retirement. In fact, the decisions you make in this decade can determine whether your money lasts as long as you do.

Here are some of the smartest moves you can make: 

Clarify exactly when you'll retire

If you haven't already, pin down your retirement date as concretely as possible. This allows you to finalise your super strategy, plan your cash flow, and make informed decisions about when to access various income streams. Many Australians retire earlier than planned, so having a flexible contingency plan is wise. In fact, according to the Australian Bureau of Statistics, the average age at retirement of all retirees in 2024-25 was 57.3 years. 

Understand your super access rules

In Australia, you can access your super at your preservation age (60 for most people born after 1964) if you've retired or at age 65 regardless. Understanding exactly when and how you can access your super – and in what form (lump sum vs income stream) – is fundamental to retirement planning.

Convert your super to a pension income stream

Moving your super from accumulation phase into an account-based pension is one of the most tax-effective moves available to retirees. Investment earnings and withdrawals from a pension account are tax-free once you're over 60. This is a significant advantage and worth structuring carefully with professional advice. 

Build a sustainable drawdown strategy

One of the biggest financial risks in retirement is drawing down your savings too quickly. Work out a sustainable withdrawal rate that balances your lifestyle needs with the longevity of your funds. Most retirees use the government's age-based minimums as their withdrawal guide – 4% under 65, 5% from 65 to 74 – keeping tax low while making their super last. 

Plan for a long retirement

Australians are living longer than ever. According to the Australian Bureau of Statistics, as of 2022–2024, life expectancy of Australians at birth is approximately 81.1 years for males and 85.1 years for females. This means a 65-year-old today can expect to live well into their 80s or beyond – your financial plan needs to account for this. Don't be overly conservative with your investments just because you've retired, you still need growth to outpace inflation over the long term.

Understand the Age Pension and Centrelink

Even if you have substantial super, understanding the Age Pension assets and income tests is important. The full Age Pension age in Australia is currently 67. Knowing how your assets and income streams interact with Centrelink entitlements can help you structure your finances to maximise any pension you may be entitled to – even a part pension plus Commonwealth Seniors Health Card can be enormously valuable.

Sequence of returns risk

The years immediately before and after retirement are the most vulnerable to what's known as sequence of returns risk – an early market downturn can permanently set back your retirement savings. Having one to two years of living expenses in cash or stable assets means you won't be forced to sell growth assets at depressed prices during a downturn.

Rightsize your home

If you haven't already downsized, your 60s may be the right time. Beyond freeing up capital, a smaller home means lower maintenance costs, lower rates and often a lifestyle better suited to retirement. The downsizer super contribution scheme (available from age 55) allows you to contribute up to $300,000 each from a home sale into super – a significant opportunity to boost your retirement funds. 

Get aged care planning underway

Aged care is something most people prefer not to think about, but planning ahead makes an enormous difference – financially and emotionally. Understand the different types of aged care (home care, residential care), how costs are assessed and what role your assets and income will play in determining fees. Having this plan in place well before it's needed gives you and your family far greater control.

Review and simplify your investments

Complexity in an investment portfolio becomes harder to manage as you age. Your 60s are a good time to simplify – consolidate accounts, reduce the number of holdings and ensure your asset allocation reflects your need for both income and moderate growth. Simplicity also makes things easier for whoever may manage your affairs in the future.

Ensure your estate plan is comprehensive and current

Your will, superannuation death benefit nominations, enduring power of attorney, and medical power of attorney all need to be current and clearly documented. Super nominations in particular lapse if not renewed and can result in your super going somewhere you didn't intend. This decade is also the time to have clear conversations with family about your wishes.

Stay engaged with your finances

Retirement is not the time to disengage from your financial life. Markets fluctuate, legislation changes and your personal circumstances evolve. Doing an annual financial review – ideally with a professional – keeps you informed and allows you to adapt your strategy as needed.

Focus on what money is actually for

After decades of accumulating and planning, your 60s are when you get to actually enjoy the fruits of your financial discipline. Spend intentionally on the things that genuinely bring you joy and meaning such as travel, family, hobbies and experiences. A retirement full of rich experiences is the whole point. Don't be so focused on preserving capital that you forget to actually live.

Your 60s can be one of the most financially rewarding and personally fulfilling decades of your life. With the right strategies in place, you can enjoy the lifestyle you've worked for with confidence that your money will support you for the long haul.